The reaction was a response from investors as they continued to be concerned about the upcoming vote over Scottish independence.
The referendum, which takes place on 18 September, took a surprising turn at the weekend after two key polls suggested the appetite had shifted from union to independence.
Fall and Rise
At opening, the pound slumped by a further 0.04% against the US dollar, to hit £1.609 in early trading. It rose against the Euro however. Moving up by 0.06%, it was trading at 1.24970 euros shortly after the market opened.
The FTSE also saw an early rise, up by 4.5 points (0.07%) to 6,839.29.
Yes Vote Gains Momentum
The Scottish Yes campaign received a huge boost over the weekend after the results of the poll suggested a win.
Polls in the run up to the vote before have all pointed towards a No campaign win.
Many analysts are still predicting a narrow win for the No campaign however, with Citigroup among this group. However it, along with other financial service providers, have warned investors that close attention of the situation is needed.
There are also warnings that a ‘Yes’ vote could see the UKs economic recovery stall.